Mattel Agrees to Purchase Mega Brands Inc for $460 Million

Reuters is reporting that Mattel Inc., the world’s number 1 toymaker, has agreed to purchase Mega Brands Inc. for around $460 million. Mega Brands, who makes Mega Bloks, has been trying to compete in the in the construction toys segment for many years but has dominated by The LEGO Group. Mattel hopes this acquisition can help the brand better compete in the building blocks industry. They already create a number of different types of toys and may have more licences at their disposal. A couple of things that LEGO has an advantage on is quality and consumer loyalty which is why they are the world’s leading construction toy manufacturer. What impact do you think this acquisition of Mega Brands Inc. by Mattel has on The LEGO Group in the future?